Discount pricing policies for new products

This paper picks up the issue of pricing new products where marketing strategists leave off, typically at the growth stage of the product life cycle. Within the finite planning horizon of the growth stage, models are developed for jointly optimizing discount price and replenishment schedule of a product for one or more buyers. The procedures include instruments for negotiation such that total savings resulting from a discounting scheme may be shared between the vendor and purchaser(s) in some predetermined manner.